Best High Interest Savings Accounts In Online Banking

We provide a list of the best high interest savings accounts available.

These days, the “high interest” label seems more like a misnomer. The thing is, we’re all facing lower rates across the board, as many of the best rates we’re seeing for liquid savings accounts are currently lingering at 2% APY or lower. Let’s check out some “high yield savings accounts” in this low interest rate environment:

Best High Interest Savings & Checking Accounts In Online Banking

Although these banking options are sporting lower rates, they are still relatively higher than the average interest rates you may encounter at banks and financial institutions around the nation. Plus, these options also score well for other features in online banking, which we’ll cover further in this article. I am partial to those banks that offer brokerage services along with banking services since this makes it easy for me to consolidate my money management under one umbrella.

So what do you look for when shopping for a high interest savings account? It’s true that for some customers, it’s all about finding a solid bank to park their funds while they await a more stable stock market, to others, it’s still all about finding the highest savings account rates. In my mind, there are other considerations that one may have when opening such an account. For instance, I prefer to take a look at all the features offered by a bank to determine if I should become a customer.

What Makes A Good Online Bank?

Here are some factors for choosing the best high interest savings account for your needs, particularly in the online banking realm:

1. Stability and Reliability
How solid is your bank? Sure, savings accounts and many other conservative bank products are FDIC insured and backed by our government, but it’s easier to sleep at night knowing that your bank isn’t on the government’s “troubled banks” list. I prefer to be assured that my savings are sitting somewhere stable and safe.

2. Information Security
You may be wondering just how safe it is to bank online. In reality, banks have gotten very sophisticated about ensuring the security of your information online. Add on the fact that by going paperless, you’re less vulnerable to acts of fraud often committed by those who may get access to your paper statements and mail. Online access to your high interest savings account also makes it easier for us to notice suspicious activity against our accounts right away.

3. Customer Service
Ever get caught in voicemail hell? Do you find yourself frustrated with your bank over minor matters? I wouldn’t settle for less. Find those companies where customer service reps are responsive and knowledgeable about the products of their company.

4. Website Usability and Performance
How good is the bank’s website and online connectivity? If you’re going to put your money in an online bank account, your online site experience will matter greatly. See if your bank’s site is user friendly, intuitive and uncluttered — if they’re slow and cumbersome to use (there are more than a few out there), I’m more likely to take my business elsewhere.

5. Brand Name Recognition
Although there are great banks, thrifts and credit unions that have their share of loyal customers, I think it’s unlikely that you’d go wrong with a bank that harbors a strong reputation and highly recognizable name.

6. Brick and Mortar Branches
Not all online financial companies exist in a purely virtual capacity. There are banks with brick and mortar branches that have expanded into the online realm in order to cut costs and offer higher yields. Bigger banks like ING and HSBC have launched internet banking divisions that are separate from their main business.

7. Strong Track Record For High Rates
Of course, one of the main reasons why people sign up for online savings accounts is clearly the offer of relatively higher interest rates coupled with liquidity. If you’re a rate watcher, you’ll see that there are banks that have a history for maintaining competitive rates (we offer a list below) vs others that fall behind the pack.

Aside from what I’ve already mentioned, there are also these features to consider in a high interest savings account: how easy is it to qualify for an account (how much is the minimum deposit you can afford), the availability of helpful tools and information, as well as connectivity to external accounts you may have.

One of my biggest problems with having money in the bank is that if you’re only getting rates that are the same or lower than the inflation rates, then you’re actually loosing money. Secondly you’ll also have to pay taxes on your interest income which will only mean that you’ll need higher deposit interest rates to make it worth your while.

So if inflation rates are e.g. 2% then anything below 3% in the bank would be a loss and not a gain. Instead I try to find other deals that would actually provide me with a profit while still being “as good as money”. There are tons of options out there but you’ll need to start looking to find them.

Baker @ ManVsDebtMay 1, 2009 at 6:52 am

I think that you did a good job in pointing out that interest rate is not the only thing you should look for. I’m personally still with ING, because I love some of the other factors you listed. They have great customer service, treat me well, and I know in the long run they will stay competitive!

NabeelMay 1, 2009 at 9:40 am

I’ve come across a few of these ‘best high interest savings rate’ lists. None of them, however, list GMAC bank (www.gmacbank.com). They have an interest rate of 2.25%. I am now feeling a little uncomfortable keeping money in there since no one really talks about it. I have checked and found out that they are FDIC insured. What are your thoughts about that bank? Did you know about it? If so, then why’d you leave it out of this list?

I actually have seen GMAC in many lists as well. I believe it’s a good bank too. I provided a sampling of options but I can definitely update this list accordingly. I will review their terms to make sure. Thanks for pointing it out! On this blog, I list banks, institutions and products which I’ve studied to some extent, and which I or someone I know have had personal experiences with; generally, I’ve found that the ones we discuss have great treatment of their customers (or some other good features). But just because a particular bank is not on a list, doesn’t mean it is not as good, it just means that I may not have had a chance to review it diligently. So I would encourage anyone checking out a suggestion or recommendation to also conduct their due diligence (as in the post above, I mention the features against which to check your account, to see how it measures up for you).

MoneyEnergyMay 1, 2009 at 3:59 pm

Nice list, thanks for the explicit comparisons. I should probably get on with the business of getting an online bank account – though, I currently use online banking (as well as online brokerage services) with my so-called “brick and mortar” bank. I guess for me, my bank (which is effectively already an online bank for me) is already pretty perfect (though I’d have to compare yet on the aspect of the high-interest savings. That would be the only reason to consider a new bank at this point).

SarahMay 2, 2009 at 9:43 am

Hi! I found better rates in high-yield checking accounts, especially through credit unions.
I got one at 5.15%. Caveat: requires credit card activity of 15 transactions, online billpay, e statements and direct deposit (trying to find a creative way to do this since my waitress checks always=0.00$, I do have online income and LLC income….any suggestions?) Not the best CD rates but competitive. I just did some banking and saw they lowered their APY to 4.15% (still scceptable, I guess:/
Mycheckingfinder.com, I believe. Def. gotta keep above inflation!

jimMay 4, 2009 at 6:15 pm

Money plays baby… interest rate is the most important aspect.

TammyMay 18, 2009 at 8:46 am

As long as the bank is FDIC insured, I am not really worried about my money. I recently started using SmartyPig which is currently offering 3.05%

SarahJune 11, 2009 at 4:56 pm

@Nabeel & @Silicon Valley Blogger:

Ally Bank /is/ GMAC bank. They just re-branded as a PR move, distancing themselves from their auto industry roots.

Thanks Sarah, you’re absolutely right… Ally Bank is the new name for GMAC. I actually wrote a post on Ally Bank (formerly GMAC) here. I do appreciate the comment!

GooberJune 20, 2009 at 6:04 am

Also, the information for WT Direct is a bit misleading.

Here is what their site says: There is no minimum deposit required to open the account. For the first 60 days from the date the account is opened, regardless of the account balance, the account will earn our highest APY, which is variable and is currently 1.76%. After the first 60 days, the APY for the account will have two tiers: (a) a higher APY for accounts with balances of $10,000 or more (variable and currently 1.76% APY); and (b) a lower APY for accounts with balances of less than $10,000 (variable and currently 0.15% APY).

So, unless you deposit and keep $10k in the account, you will earn 0.15%… that’s laughable.

TheGooroo @ FinanceAdvisoryStopJuly 2, 2009 at 12:53 am

I agree with what Jim said above. Interest rate beats all.

ErikAugust 1, 2009 at 3:03 am

in response to the top comment posted by Mikael@RetireRich’s…getting an interest rate that is above current inflation is of course vital in making sure you get a return on your investment.

But the inflation rate has been in the negative since March 2009 (also known as deflation.) In fact, the rate in June was -1.43%. So even a .01% rate would yield a profit. Im no economist though so maybe Im missing something here – if so, please correct me. Below are the inflation rates since 2009

I wonder when savings rates will return to a decent rate again? I feel sorry for pensioners and the like who rely on the interest to live on, as their income funds must have been hit really badly.

ScottNovember 27, 2009 at 7:36 pm

If you want FDIC then stick with the banks. This is an investment bound by a contract and the best investment I’ve ever made! Can’t beat the rates and withdraw all your money at any time, who can beat that?!?!

TylerJuly 7, 2010 at 11:05 am

Flux Holdings is offering a 5% APY with no minimums. Sign me up.

MasonAugust 10, 2010 at 7:53 am

In regard to Tyler’s last comment, Flux Holdings is not FDIC Insured. The rate is also down to 2.5%.

Sorry, never heard of Flux Holdings. Please do your due diligence before putting your money into a new savings account, especially if it’s a product you are not familiar with. I prefer to feature savings accounts that are, for the most part, offered by familiar, well-known, reputable banks and financial institutions.

TomJanuary 27, 2011 at 3:20 pm

What do you think about emigrantdirect.com? They have a pretty good history of high interest rates and their entire site is HTTPS (the extra S means it is a secured server) so I assume they are a safe online bank. But their rate right now is only 1%, which is good, but not great. They do have some physical locations where I am in the city and have been around for a while. I feel like those are good reasons to consider them, I was wondering what your opinion is?

I actually called them as well as Dollar Savings Direct in the past, and felt that the person behind the line was rather curt and not really well informed when I asked about their products (I had questions about their CDs). She seemed to keep wanting to refer me to their site but the answers I needed were not well explained and were not existent. I wasn’t too thrilled with the reception I got from them. I actually prefer EverBank — they seem to be a great fit if you’re after more sophisticated savings products. For basic products, I’d go with HSBC, FNBO or ING Direct.

henrietta smithOctober 21, 2012 at 10:37 pm

I need help with putting my money in a secure fdic saving account, cd or money market that is paying a decent interest rate. I have money in a union bank with almost 0 interest rate. I need my savings to start working for me. Please give me some good financial advice to follow up on.

Henrietta,
What do you mean by a “decent” rate? If it’s anything higher than 2% then we’re all out of luck (for the most part). Unfortunately, interest rates are extremely low right now as the government is trying to spur growth by making it cheap to borrow. This penalizes savers. Also, they are encouraging more risk taking by forcing investors to seek better returns through the stock market. I believe that this is the wrong direction to take and would much prefer interest rates to be higher. However, it is what it is. If you want higher returns, you’ll need to invest your money in assets that may carry a bit more risk than cash.